Bitcoin has fallen in recent sessions after a software upgrade planned for next week that could have split the cryptocurrency in a so-called "fork" was called off due to waning support.
Jihan Wu, the co-founder of one of most recognized and valuable bitcoin companies Bitmain, and Roger Ver, Bitcoin angel investor, were also involved in the NYA, but b backed out of the agreement early through their own fork, Bitcoin Cash, a direct response to the User Activated Soft Fork (UASF) which enabled SegWit. "As Bitcoin Cash enjoys much faster transaction speeds, we have started to see a recycling of positions out of Bitcoin into Bitcoin Cash as a effect".
Bitcoin was trading at $6,221 at 7:30am GMT on Sunday, plunging over 20 percent from its Wednesday record high, according to data compiled by industry website Coinmarketcap.
But, SegWit2x supporting businesses and their executives including Xapo President Ted Rogers emphasized that the short-term price trend of Bitcoin Cash has been inorganic and unsustainable, given its 100 percent increase in value within a single day, and the concentration of the trading volumes in the South Korean cryptocurrency exchange market. It allows for bigger "blocks" of transaction to be processed, speeding up the network. But, after the next difficulty adjustment when Bitcoin Cash becomes more hard and expensive to mine than bitcoin, miners will inevitably switch back.
Bitcoin Cash rose suddenly, adding almost 80% to its price and is up 188% in the past 7 days.
The massive demand for selling Bitcoin increased the clogging of the network, further revealing that Bitcoin has severe scaling issues. Bitcoin, Ethereum, Bitcoin Cash, Ripple, and Litecoin, five of the largest cryptocurrencies in the market, all have contrasting philosophies, structures, and infrastructures.
The price of Bitcoin has suffered as a result.
Featured image from Shutterstock.